Justices decline to hear case challenging CFPB
The Supreme Court declined Monday to take up a case challenging the constitutionality of the Consumer Financial Protection Bureau.
State National Bank of Big Spring, along with two nonprofit groups, challenged the legality of the agency, saying it has one director who cannot be removed by the president and has no oversight by Congress.
They claimed the structure of the CFPB was unconstitutional.
“In the history of the United States, no individual has ever wielded such expansive executive enforcement authority over an entire sector of private economic activity, devoid of the checks and balances the Constitution’s separation of powers requires,” their petition for appeal read.
The federal appeals court in D.C. had upheld the structure in a similar case last year.
“We are disappointed by the Supreme Court’s decision to turn down the case,” said Sam Kazman, general counsel for the Competitive Enterprise Institute, one of the nonprofits.
There are other cases pending that raise similar issues, Mr. Kazman said, adding he hopes the high court will consider one of those.
The CFPB was created through legislation, the DoddFrank Wall Street Reform and Consumer Protection Act, in 2010 as a result of the 2008 recession. Its mission is to protect consumers by overseeing financial companies such as banks and credit unions.